LAS VEGAS, Nev. (FOX5) – A new “affordable mortgage” program is set to help struggling and lower-income residents across the Las Vegas Valley buy a home through help from Clark County.
The mortgage program is similar to others done across the country, according to Clark County Manager Kevin Schiller. Clark County and other local governments have been working to fill the need for more than 80,000 affordable rentals for lower-income residents who cannot afford rising rents; Schiller said homeownership is also a crucial goal for these residents, who are often priced out of the Las Vegas housing market.
“What we’re trying to do here is help those lower-income earners get into the buyers market, and trying to figure out how we can help with that gap,” Schiller said. That whole that whole dialogue between leasing and owning: this is really an opportunity for that ownership and to gain some equity versus simply leasing,” he said.
$10 million of county funds will be used towards 240 homes, according to a county spokesperson. The homes will all be newly constructed.
The first development will be on land off Rebecca Road in Las Vegas. 30 homes will be built there, and construction will start in 2025.
County documents explain in detail how the program would work for prospective buyers, and what possible mortgage payments could look like.
The county would continue to own the land. Buyers will own the house. Applicants will be screened to make sure they can afford the commitment.
The mortgage, with current interest rates, will be based on income. Buyers must commit to the homebuying process and must pay 3-5% in a down payment, but they are able to obtain get down payment aid.
All prospective homebuyers must go through homebuyer education counseling.
According to charts in documents, a lower-income family of four that has an annual income of $69,300 a year would be eligible for a brand-new 3 bedroom home at $273,700. A mortgage could be around $1,644 a month; the county and lender will determine an “affordable mortgage payment”– which would lump in property taxes, insurance, HOA fees and landscaping fees.
The homeowner would accrue equity. Once the homeowner sells, they keep the profits– but the home must stay in this program and be sold to a family who would be eligible to participate.
“They’ll actually be able to gain equity as as the economy changes,” Schiller said.
Anyone interested can email: [email protected] They must indicate that they are interested in the “CLT Homeownership” program.
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